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sales manager's compensation package is similar to that of a salesperson in many
respects. Some sales managers are just paid a salary, but the vast majority receive
some monetary incentive. This incentive can take several forms - the most common
of which are an override on all sales in his/her region of responsibility and
a performance bonus. The override is usually a far smaller percentage of revenue than that paid to the salesperson. The sum total of the manager's commission revenue (from all the reporting salespeople) should approximate a compensation figure, that when combined with the manager's salary, equals what the employer has budgeted for this position (see Sample Sales Commission Plan calculations). Again, this override commission should be paid monthly. The bonus can be structured in one of several ways. Most common are growth and profitability bonuses. Bonuses are typically paid quarterly or at year's end. The bonus formula is usually known to the manager. A year-end bonus is often predicated on the overall company performance. Monies that go into a shared bonus pool are not determined until after the corporate financial books are closed at the conclusion of the fiscal year. For assistance in implementing a plan please contact: Brooks Fenno, CMC at SALESMARK Phone: (617) 536-0197 Contact me to discuss your problems, challenges, and needs. Literature available for established companies headquartered in the Northeast include:
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